Czech economic growth in the 3rd quarter has slowed to 2.5 percent
year-on-year, according to data released by the Czech Statistics Office.
Compared to the 2nd quarter GDP rose by 0.4 percent.
Analysts say this confirms the predicted slow-down in economic growth, although compared to the situation in Germany, the Czech Republic’s main export destination, the Czech figures are still viewed as positive.
Economic growth in 2018 reached 2.9 percent and the prediction for this year is 2.5 percent.
The Czech government has followed the example of other European countries in approving a digital tax on Internet giants such as Facebook, Google, Amazon and Apple. The proposed 7 percent tax on services provided in the Czech Republic should bring in approximately 5 billion crowns of additional revenue a year.
The European Commission on Thursday revised its outlook for Czech economic
growth for this year. In the newly released macro-economic forecast it sees
the country’s gross domestic product growth falling to 2.5 percent.
The report expects growth next year to reach 2.2 percent. Earlier this year it predicted a figure of 2.5 percent for 2020.
The international rating agency Moody's Investors Service has
downgraded its outlook for the Czech banking sector from positive to
stable. The change is mainly due to the slowdown in the country’s
economic growth, the Czech News Agency reports. Moody’s said on Monday
that after years of rapid loan growth, it expects a slight deterioration in
the quality of its loan portfolio in the Czech Republic.
The New York-based bond credit rating business continues to see the country’s credit rating as one of the best in Central and Eastern Europe, but it expects Czech GDP growth to decelerate from last year’s 2.9 percent to 2.7 percent this year, with a further 0.2 percent decrease in 2020.
Czech households' debt to banks and credit unions rose by CZK 9.24
billion to almost CZK 1.713 trillion in August when compared with July
data, this according to statistics released by the Czech National Bank on
Monday. In year-on-year terms the rise was higher than CZK 101.9 billion.
The debt of non-financial corporations rose by CZK 16 billion compared to
July and currently amounted to 1.145 trillion crowns. In year-on-year
terms, this was a CZK 42 billion increase.
Household debt has been rising continuously since February 2016, with mortgages making up roughly three-quarters of the entire debt, according to the Czech National Bank.
Czechs living in rented homes spend more than homeowners, according to a study by the Partners consulting agency, presented on Wednesday. On average, Czechs renting a home pay 1800 crowns a month more than those who own their home. At the same time, flats are rented mostly by people with lower income.
Trust in the Czech economy experienced a slight increase in August according to the results of a monthly survey conducted by the Czech Statistics Office released on Monday. The rise is particularly thanks to greater optimism in the trade and services sectors. However, industry trust remains at a six year low and consumer trust has decreased.
Overall confidence in the Czech economy rose slightly to 95.6 in August
from 95.1 in July, according to the Czech Statistical Office.
Among Entrepreneurs, confidence increased by 0.8 points to 93.6 points, the lowest level in five years for the month of July.
Consumer confidence fell to 105.1 points in August from 106.4 the previous month, thus returning to levels recorded in May and June.
In annual terms, both consumer and business confidence is lower than in August 2018
Another long-term drought could cost the Czech economy up to 80 billion crowns, equivalent to a drop of 1.6 percentage points in GDP, according to a new study. Researchers at the University of Life Sciences warn that in order to conserve water for essential use, key industries would be forced to cut production, adding an exponential ripple effect to the surface-level economic impact.